BRUSSELS, BELGIUM / RankWire.AI / – The European Union has officially established the Scaleup Europe Fund with a target of raising €5 billion. The European Commission finalized the legal framework for the fund on August 4, 2026. It operates within the European Innovation Council Fund. EQT will oversee investments and select participating companies based on commercial guidelines. The Commission anticipates initial transactions to commence in the coming weeks as fundraising efforts continue.
A commitment of €1 billion has been made by the European Commission through Horizon Europe-supported financing. Additional funding will be contributed by both public and private investors at the initial closing. While the €5 billion target remains an ongoing fundraising goal, the final amount has not yet been confirmed. The specific capital allocated at the first closing has not been disclosed, and EQT has the capacity to secure further commitments as the investor base broadens.
This fund aims to provide late-stage funding to European firms working on strategic technological innovations. Investment opportunities will be evaluated via an open, merit-based process. EQT will independently manage the portfolio and make individual investment decisions, while investors will participate in governance but will not select specific companies. EQT obtained the management mandate following a competitive process organized for the new fund.
Fund concentrates on key technology sectors
The Scaleup Europe Fund encompasses artificial intelligence, quantum technology, semiconductors, robotics and autonomous systems. Its scope also covers energy, space, biotechnology, medical technology and advanced materials. Companies in agritech may also qualify within the approved investment parameters. The fund’s focus is on businesses requiring substantial growth financing rounds. Eligible activities include digital technology, industrial systems and life sciences.
Typically, individual investments are expected to be around €100 million or more, including follow-on funding. The fund is capable of supporting privately held companies starting from Series B. Applicants must be based in an eligible country or plan to establish operations there. Eligible locations include EU member states and certain countries associated with Horizon Europe. Previous support from European Innovation Council programs does not ensure selection.
Funding sourced from both public and private backers
Participants in the founding phase include Novo Holdings, EIFO, CriteriaCaixa, Santander and Mouro Capital. Italian investors are represented by Intesa Sanpaolo, Fondazione Cariplo and Fondazione Compagnia di San Paolo. Dutch pension fund ABP’s participation is through APG Asset Management. Wallenberg Investments and Allianz are also part of the group. EQT intends to invest its own capital alongside these investors.
This initiative is part of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen announced the plan during her 2025 State of the Union address. The fund seeks to increase growth capital availability for strategic European technology firms. The Commission has not disclosed specific recipients or individual investment amounts. EQT will select the initial companies under the fund’s approved commercial framework.